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Money market report for the week ending May 18

ECB monetary operations

On May 14, the European Central Bank announced its weekly main refinancing operation.

The operation was conducted on May 15 and attracted bids from euro area eligible counterparties of €2.01 billion, €0.004 billion higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of zero per cent, in accordance with current ECB policy.

On May 16, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.08 billion, which was allotted in full at a fixed rate of 2.21 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value May 17, maturing on August 16 and November 15, respectively. Bids of €40 million were submitted for the 91-day bills, with the Treasury accepting €20 million, while bids of €37 million were submitted for the 182-day bills, with the Treasury accepting €2.50 million. Since €22 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €0.50 million, to stand at €334 million.

The yield from the 91-day bill auction was -0.358 per cent, down by a 0.2 basis point from bids with a similar tenor issued on May 10, representing a bid price of €100.0906 per €100 nominal. The yield from the 182-day bill auction was -0.357 per cent, a drop of 0.2 basis point from bids with a similar tenor also issued on May 10, representing a bid price of €100.1808 per €100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange. Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on August 23, and November 22, respectively.

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